Thursday, March 17, 2016

[SDRL] update

In the backlink I was looking for a bounce to begin.

While we did get a bounce since then, a new threat model has emerged as well. If this is going to happen it will likely do so with a gap down in the AM tomorrow such that nobody gets out easily. Because this is a 2nd wave we knew that it could be a deep vee 2. Also, there is a gap down there to fill. So the safe thing to do on this one is to just sell right now and then only buy back in if it can achieve a higher high than the high on the 11th. If you just set stops and hold overnight, the gap will take you out if it happens.

Yes, the opposite could also happen but I always tend toward conserving the cash I have over taking unnecessary risks toward earning more. This game is dangerous enough without taking this kind of risk.